Query Corner: Long-term correction seen in SAIL :: Business Line

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

I want your opinion on Patni Computer purchased at Rs 563 and SAIL bought at an average rate of Rs 160.

Ravindra Davda

Patni Computer Systems (Rs 367.5): Patni Computer has long-term resistance around Rs 575 where it peaked in June 2007. The stock once again spluttered around this zone in June last year and is in a sharp correction since then. The stock declined below its key medium-term support at Rs 423 this month. Subsequent supports are at Rs 360 and Rs 300.

The stock is close to the first support but is not showing any sign of reversal from here.

Investors with long-term perspective can however hold the stock as long as it trades above Rs 300.

But the medium-term is likely to be choppy for this stock and it can face resistance at Rs 420 and Rs 500 in the days ahead. Investors with short-to-medium term perspective should exit the stock on failure to move beyond these resistances.

The area between Rs 600 and Rs 620 will continue to act as a strong long-term resistance over the next couple of years.

Research Views: Emkay: Nov 12, 2010

Visit http://indiaer.blogspot.com/ for complete details �� ��

Contents

n        Research Views

Indotech Transformers Q2FY11E Result Estimates

Expect improvement qoq after 5 qtrs of disastrous performance. Expect volume growth of 100% led by pick up in order inflow and flat realizations to result in revenue growth of 100% YoY. Expect positive EBITDA margins of 8.2% and PAT of Rs21mn. Key things to watch - (1) commentary on GE PROLEC’s plans for ITL, (2) order inflows & realizations and (3) margins outlook.